SPAREBANKEN NORGE (SBNOR) Q3 2025 earnings summary

Executive summary

• Delivered strong results in Q3 2025, maintaining high return on equity and solid capital adequacy despite ongoing merger effects and significant investments.

• Merger of Sparebanken Sør and Sparebanken Vest formed Sparebanken Norge, effective 2 May 2025, with Brage Finans AS fully consolidated as a subsidiary.

• Rapid and effective merger process, with market share gains in both personal and corporate lending.

• Demonstrated a robust culture, achieving 159% total return including dividends over the last 3 years, outperforming peers.

• Q3 2025 pre-tax profit was NOK 2,303 million, up from NOK 1,585 million year-over-year; year-to-date pre-tax profit reached NOK 5,854 million.

Financial highlights

• Return on equity (ROE) reached 16.5% in Q3 2025, up from 14.2% in Q3 2024; year-to-date ROE was 16.9%.

• Earnings per equity certificate were NOK 4.78 in Q3 2025, compared to NOK 3.87 in Q3 2024.

• Net interest income for Q3 was NOK 2,760 million (NOK 1,574 million last year); year-to-date NOK 6,658 million.

• Cost/income ratio for Q3 was 29.4%, or 28.8% adjusted for merger costs; year-to-date 28.4%.

• Loan losses remained low at 0.07% of gross loans in Q3 2025.

Outlook and guidance

• Financial targets for 2026–2028 include ROE above 13%, cost/income ratio below 30% (excluding merger costs), and CET1 ratio above 16%.

• Board targets: ROE after tax of 13%, adjusted ROE of 15%, payout ratio ~50%, CET1 ratio 1.1 percentage points above regulatory minimum.

• Ambitious growth targets: 6–8% annual loan growth in personal market, 8–10% in corporate market, and Bulder aiming for NOK 100 billion in mortgages by 2028.

• 2025 growth ambitions: 4-5% loan growth in retail, 6% in corporate, 4-5% deposit growth in retail, 5% in corporate; Bulder target NOK 73 billion, Brage Finans 13% portfolio growth.

• Total loan balance expected to reach approximately NOK 620 billion by Q4 2028.